Since last speaking to Andrew Clee and Paul Ma in May, lots has changed, but strategy has not. Andrew, Paul, and host Dave Bushnell talk about the fundamentals of ETF portfolio construction and the pros and cons of different types of portfolios in today’s volatile environment. Paul Ma, VP, Lead Portfolio Strategist at Fidelity Investments, is focusing on strategic secular long-term horizons rather than tactical short-term issues, which he thinks matter less to portfolio construction. He also notes that equities in international markets are currently more attractive, because they have better control over the coronavirus than the U.S. does. Andrew Clee, VP, ETFs at Fidelity Investments Canada, says 2020 has been a great year for ETF flows in the Canadian market, at around $22 billion year-to-date. To put that into perspective, Andrew notes, just $20 billion would be considered good for a whole year. Also, Andrew says that the biggest concern for asset allocation right now is in the fixed income portfolio. With yields much lower than they have been, there is a concern that retirees can’t get the income they need. This pushes them up the risk spectrum.
Recorded on July 17, 2020.